Australian banks are openly defying the Reserve Bank’s rate hike agenda, aggressively slashing variable home loan rates – but only for new customers.
New data from Canstar.com.au reveals a staggering 11 lenders have cut select variable rates in the past six weeks.
This comes despite every bank passing on the RBA’s May cash rate increase in full.
The result? A remarkable 40 lenders now offer at least one variable rate below 6 per cent.
Big names like ING, BOQ, Community First, and Queensland Country Bank are among those leading the charge, desperate to lure fresh business.
MORE NEWS
Stamp duty axed for first-home buyers in Aus first
Exposed: Diggers slugged $100k ‘tax on service’ for home loans
We tax the rich more – so why not for mortgages too?
“Eleven lenders have taken the knife to new customer rates in the last six weeks in a bid to coax new business in the door, Canstar.com.au’s data insights director Sally Tindall confirms.
“While existing customers will naturally be a bit miffed by such moves, what this tells us is that competition in the mortgage market is heating back up and there are discounts to be had for those willing to play ball.”
Source: Canstar.com.au
Major banks at odds over RBA’s next move
Adding to the market’s chaos, Australia’s biggest banks are deeply divided on the RBA’s future.
NAB has dramatically reversed its forecast. Once predicting another hike, it now expects the RBA to hold steady this year, followed by three 0.25 percentage point cuts in 2027.
This aligns with CBA, which foresees two cuts next year.
Both point to tightening financial conditions.
Source: Canstar.com.au
Source: Canstar.com.au
Westpac, however, remains the outlier.
It still predicts two 0.25 cash rate hikes in 2026, with cuts not expected until 2028.
“NAB’s dramatic forecast reversal is the latest reminder that the economic outlook remains highly uncertain,” Ms Tindall noted.
“Just weeks ago it was predicting another hike as early as June, whereas now it’s forecasting three cuts by the end of next year.”
The grim reality: Another hike looms for some
Despite the talk of cuts, another RBA hike can’t be ruled out.
If Westpac’s August prediction of a 0.25 percentage point increase materialises, a $600,000 mortgage holder with 25 years remaining faces an extra $92 on their monthly repayments.
If it’s the fourth hike this year, the total monthly increase hits a painful $364.
Source: Canstar.com.au
“Use the expected pause next week to do a health check on your mortgage. If your rate isn’t competitive, now is the time to make some noise,” Ms Tindall’s advised.
“There are still 40 lenders offering at least one variable rate below 6 per cent, but you might have to turn yourself into a new customer to benefit.”
Help us improve your reading experience
Got a minute? Your feedback will help us build a better experience for you.
Help us improve this page
English (US) · 